According to early data on average tax returns for this year’s tax season, Americans might be getting a third less money than they did last year.
The Internal Revenue Service (IRS) notes that as more people file their taxes, tax data begins to level out, so people shouldn’t make hasty judgments about the year’s declining tax returns.
Therefore, it is advised that Americans hold off until April 15th, when the tax season ends. Although 33 million tax returns have been filed so far, this is roughly 5% fewer than the total number filed at this time last year.
These People Will Receive $1,000 Less in Their IRS Tax Refund
Compared to the previous year, the tax season began two days earlier this year. It was expected that more people would have submitted their taxes by now, but this hasn’t happened. It is difficult to determine the precise cause of people delaying filing their taxes.
There is conjecture that individuals are anticipating the implementation of certain recommendations put out by the recently appointed Trump Administration during this tax season. Because of the tax reduction that President Trump promised during his campaign, which included no tip taxes, American workers might have waited for it to take effect before filing their taxes.
This proposed tax benefit is not likely to take effect for this tax year, though. The IRS also speculates that small business owners may have waited longer to get financial tax forms, which may have contributed to the filing delay. Since the deadline for issuing W-12 Forms is January 31st, it is possible that more people obtained their documentation when the tax season began last year.
An additional factor contributing to the delay in filing tax returns could be the fact that gig workers are taking longer to complete their 1099-K forms. This year, more people are getting 1099-K forms. Prior to the verdict, these tax forms were only required to be completed by gig workers who earned more than $20,000 and performed more than 20 gigs in a year.
What Should Americans Expect About Their IRS Tax Refund This Year?
During the current tax season, many developments are occurring simultaneously. It appears that Elon Musk’s Department of Government Efficiency (DOGE) organization, which aims to reduce costs, is reviewing IRS operations.
Additionally, a post-Musk made on X in February sparked concerns that Direct File, a free online tax preparation and filing tool, had been removed. Nonetheless, Direct File is still accessible to citizens in 25 states. All of the uncertainty in Washington may be encouraging people to put off paying their taxes.
Refunds will be issued more quickly to those who file as soon as feasible. Just for this reason, tax professionals advise Americans to file their taxes as soon as possible. Taxpayers are also encouraged to file as soon as possible due to the closing of IRS offices across the country and the possibility of job losses for many IRS staff members during tax season.
After online filing your taxes, you will receive your refund within 21 days. Tax professionals often advise completing your taxes electronically because paper taxes take a little longer to process because an IRS agent must handle them.
The average refund check as of February 14, 2025, was approximately $2,169, a 32% drop over the refund check from the prior year.
The average return check during the same period last year was $3,207. Individual taxpayers are concerned that their tax refund this year may be smaller due to the $1,000 reduction. All individual taxpayers are cautioned by tax professionals, however, that they are not assured of receiving IRS refund checks this year that are approximately $1,000 less.
This tax refund amount will undoubtedly fluctuate as more people file their taxes. Members with low to moderate incomes typically file their taxes initially.
Only individuals with more complicated taxes and those from wealthy households file their taxes after these simpler tax refunds have been processed. Some individuals will file their taxes on April 15th only, waiting until the last minute. Once more tax returns are filed, any current tax statistics will undoubtedly be changed.
